South Korean Exchanges consider suing the government because of the unfavorable regulations as we can see more in our latest cryptocurrency news.
The smaller South Korean exchanges consider suing the government for the unfavorable regulations because they require exchanges to have a real-name account with the local banks by September that can push many smaller trading platforms out of business. They are planning to fight back by launching a lawsuit against the government. The South Korean government plans to implement a new rule on crypto trading venues and it carries hefty fines on the companies if they fail to comply with AML rules.
Korean exchanges are under scrutiny with the new legislations.
After a few giants withdrew from the country like Binance and OKEx, other exchanges voiced concerns. According to reports, they intend to take legal actions against the government and by arguing that the authorities failed to come up with fair regulations, the representatives of the exchanges said that they could sue the South Korean government. The report asserted that the local banks are reluctant to do busienss with the exchanges but there were a few exceptions like Coinone, Bithumb, Upbit, and Korbit. This is why the smaller exchanges believe they have been discriminated against:
“These days, banks are refusing to initiate their cryptocurrency exchange verification processes without clear reasons, and most exchanges are failing to get a chance to prove themselves. The Financial Services Commission needs to step in right away.”
Another report from earlier reaffirmed the belief that some exchanges could be denied bank accounts if they are offering “too many” coins to their customers.
As reported recently, Officials in the South Korean province of Gyeonggi seized $47 million in crypto from tax evaders and now the exchanges in the country started delisting the coins ahead of the new regulations that are coming into force. The South Korean authorities seized $47 million in crypto after performing one of the largest tax seizures in the country. The long investigation led to the confiscation of $47 million in ETH, BTC, and other cryptos as per the Financial times so officials called the event the biggest crypto seizure for back taxes in Korean history. The law included new requirements for identifying the users as well as the clarity on which the assets can be listed.